Less-Than-Truckload Carriers
Description
Companies in this industry provide long-distance, general freight delivery of less-than-truckload shipments. Major companies include US-based ArcBest, FedEx Freight, Old Dominion Freight Line, XPO Logistics; as well as DHL Freight (Germany) and TFI International (Canada).
World's largest exporters include China, the US, Germany, Netherlands, and Japan, according to the 2025 report of World Options. Though trucking companies have traditionally focused on providing service in their home countries and neighboring nations, growth in emerging markets has prompted some companies to expand overseas. Such growth is typically achieved through the acquisition of established local trucking networks in the target country.
The US less-than-truckload carrier industry includes about 8,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $46 billion.
Less-than-truckload carriers handle multiple shipments combined onto a single truck for multiple deliveries within a network. Companies that provide long-distance transportation of freight from a single shipper by truckload are covered in the Truckload Carriers profile.
COMPETITIVE LANDSCAPE
Demand is driven by manufacturing output, residential and commercial construction activity, and retail spending. The profitability of individual companies depends on efficient operations. Large companies have advantages in fleet size, economies of scale (particularly related to bulk fuel purchasing), scope of services, and geographic reach. Small companies can compete effectively by offering daily or next-day deliveries within a small region, or providing specialized services such as transportation of oversized loads or delicate equipment. The US industry is highly concentrated: the 50 largest companies account for about 85 percent of industry revenue.
Less-than-truckload (LTL) carriers compete against companies in the truckload segment, as well as other modes of transportation including air, ocean, and rail carriers. Freight forwarders and third-party logistics (3PL) providers also offer services that overlap with offerings from some less-than-truckload transportation providers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Companies typically offer transportation of boxed, palletized, and other packed goods (accounts for about 90% of the industry's revenue). Other services include commercial moving, transportation of dry bulks, climate-controlled boxed, palletized packed good, as well as transportation of small packages and documents.
LTL carriers typically transport general commodities, such as apparel, appliances, food, furniture, nonbulk petroleum products, and textiles. Shipments from individual customers may range widely in size and weight.
After various orders are picked up from customers, they are typically consolidated at a local service terminal and moved to distribution centers where they can be organized by destination before traveling to a terminal in the destination city. Local trucks then deliver orders to customers.
World's largest exporters include China, the US, Germany, Netherlands, and Japan, according to the 2025 report of World Options. Though trucking companies have traditionally focused on providing service in their home countries and neighboring nations, growth in emerging markets has prompted some companies to expand overseas. Such growth is typically achieved through the acquisition of established local trucking networks in the target country.
The US less-than-truckload carrier industry includes about 8,400 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $46 billion.
Less-than-truckload carriers handle multiple shipments combined onto a single truck for multiple deliveries within a network. Companies that provide long-distance transportation of freight from a single shipper by truckload are covered in the Truckload Carriers profile.
COMPETITIVE LANDSCAPE
Demand is driven by manufacturing output, residential and commercial construction activity, and retail spending. The profitability of individual companies depends on efficient operations. Large companies have advantages in fleet size, economies of scale (particularly related to bulk fuel purchasing), scope of services, and geographic reach. Small companies can compete effectively by offering daily or next-day deliveries within a small region, or providing specialized services such as transportation of oversized loads or delicate equipment. The US industry is highly concentrated: the 50 largest companies account for about 85 percent of industry revenue.
Less-than-truckload (LTL) carriers compete against companies in the truckload segment, as well as other modes of transportation including air, ocean, and rail carriers. Freight forwarders and third-party logistics (3PL) providers also offer services that overlap with offerings from some less-than-truckload transportation providers.
PRODUCTS, OPERATIONS & TECHNOLOGY
Companies typically offer transportation of boxed, palletized, and other packed goods (accounts for about 90% of the industry's revenue). Other services include commercial moving, transportation of dry bulks, climate-controlled boxed, palletized packed good, as well as transportation of small packages and documents.
LTL carriers typically transport general commodities, such as apparel, appliances, food, furniture, nonbulk petroleum products, and textiles. Shipments from individual customers may range widely in size and weight.
After various orders are picked up from customers, they are typically consolidated at a local service terminal and moved to distribution centers where they can be organized by destination before traveling to a terminal in the destination city. Local trucks then deliver orders to customers.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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